Running your own business can have a lot of benefits, like being your own boss and working whatever hours suit you. But there’s a lot of challenges too:
Balancing the books, managing your personal time and — if you ever plan on retiring — making superannuation contributions. While it might not seem important now, you should know your options and why getting your superannuation in order is important for your future.
Why should I keep paying for superannuation if I’m self-employed?
Superannuation isn’t an unnecessary expense or waste of money. Instead, you should think of super as your retirement plan, otherwise you’ll have to live off your remaining savings once you decide to stop working.
Unlike the 10% of Australians who are self-employed, most employees have 9.5% of their ordinary earnings paid into a super account by their employers (this is known as the Superannuation Guarantee). These regular contributions help create a financially-secure future.
If you’re self-employed, you can still have a regular superannuation account with a super fund, and you can make contributions to one on a regular basis. These can be a regular 9.5% of your pre-tax income, which will help to reduce your overall taxable income, or you can choose to spread out payments with lump sums taken from your business revenue. You may be able claim a full tax deduction on these after-tax contributions.
Even if you’re not self-employed, making voluntary super contributions with REI Super are a great way to boost your super.
Is it difficult to pay super if I’m self-employed?
When you are self-employed, paying your contributions with REI Super is really easy. All you need to do is log into your member area, go to the contributions tab and select “Contribute via BPAY”. Then you can use the biller code and your personal reference number displayed to make a BPAY payment through your financial institution. Easy!
Tips for self-employed REI Super members
- Make sure we have your tax file number, otherwise your contributions will be taxed, they won’t be able to accept personal contributions and it will be more difficult to keep track of your super.
- If you’ve had other super fund accounts in previous jobs, make sure you consolidate your accounts. Read more about consolidation here.
Industry Fund Services Ltd ABN 54 007 016 195
The products or services being advertised are provided by third parties not REI Super and therefore will not be the responsibility of REI Super. REI Super may invest in these third parties but does not receive any payments or commissions from these organisations as a result of members using the products and services. Members should make their own assessment and seek professional advice as to the suitability of such products or services for their individual needs.
* This information has been issued by Industry Fund Services Ltd (Industry SuperFunds). This information does not take into account your situation and you should consider if these products are appropriate for you.